According to figures released yesterday by the US Bureau of Economic Analysis, the US contracted for the first time since the first quarter of 2022. The GDP contracted by 0.3% owing to a surge in imports which are calculated negatively by the BEA. The surge in imports probably came due to stockpiling to premeditate US tariffs imposed by President Trump.
Government spending was also down but this was partly offset by private investment. Consumer spending was higher than the last quarter and increased by 3% compared to 2.9% increase in the previous quarter. Inflation edged higher with the price index increasing by 3.4% compared to 2.2% in the last quarter.
President Donald Trump is insisting that positive economic figures will come following his full implementation of his new trade policy which is currently being worked on. The US administration claims that it is in trade talks with multiple partners and countries.
Newsroom
Leave a Reply